What Does Wall Street See for Vale's Q2?

Seth Jayson, The Motley Fool
Updated

Vale (NYS: VALE) is expected to report Q2 earnings on July 18. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Vale's revenues will decrease -13.3% and EPS will compress -36.1%.

The average estimate for revenue is $13.30 billion. On the bottom line, the average EPS estimate is $0.78.


Revenue details
Last quarter, Vale chalked up revenue of $10.43 billion. GAAP reported sales were 21% lower than the prior-year quarter's $13.54 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.68. GAAP EPS of $0.71 for Q1 were 46% lower than the prior-year quarter's $1.31 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 48.7%, 940 basis points worse than the prior-year quarter. Operating margin was 35.0%, 1,420 basis points worse than the prior-year quarter. Net margin was 34.3%, 1,700 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $54.48 billion. The average EPS estimate is $3.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,460 members out of 6,624 rating the stock outperform, and 164 members rating it underperform. Among 1,129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,089 give Vale a green thumbs-up, and 40 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Vale is outperform, with an average price target of $31.61.

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The article What Does Wall Street See for Vale's Q2? originally appeared on Fool.com.

Seth Jaysonhad no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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